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Procedure documentationInventory Valuation Simulation Report - Chile Locate this document in the navigation structure

 

If your company is based on the Chilean localization, you can run an enhanced version of the standard inventory valuation simulation report (for information about the standard report, see Inventory Valuation Simulation Report). The main differences in this enhanced version are as follows:

  • It lets you valuate each item on the basis of the valuation method in the item master data; that is, different items may be valuated using different valuation methods. Therefore, if you specify the common selection criteria for this report and for the inventory audit report identically, then the results of both reports are also the same. Alternatively, you can select any of the calculation methods offered in the classic report, for example, if you want to simulate one or more “what-if” scenarios.

  • You have the option to filter out inflation-based revaluations from the report. It is a requirement of IFRS not to include inflation-based revaluations in inventory valuation. Alternatively, if required by local GAAP, you can take inflation-based revaluations into account.

    Recommendation Recommendation

    For local reporting, use the inventory audit report, not the inventory valuation simulation report.

    The results of the inventory audit report are based on the existing records in the database, while the inventory valuation simulation report simulates the inventory value based on “what-if” scenarios.

    End of the recommendation.

Note Note

During simulation, you can create new inventory documents on another instance of the application.

End of the note.

Prerequisites

The necessary configuration has been done in   Administration   System Administration   General Settings  : On the Inventory tab, Reporting subtab, the Enhanced Valuation Report, Including All Valuation Methods radio button has been selected.

Procedure

  1. Open the selection criteria window by choosing   Inventory   Inventory Reports   Inventory Valuation Simulation Report  .

    The selection criteria window appears showing the same selection criteria as used in the last simulation, regardless of whether or not the simulation run ended with errors.

  2. Specify the selection criteria:

    Note Note

    This topic documents fields and other elements in this window that either are not self-explanatory or require additional information.

    End of the note.
    System Date/Posting Date

    Calculation of the inventory values starts from the date the company was created and ends on the system To date you enter here. If you do not specify a date in the To field, the calculation ends on today's date. If you enter a date in the From field, this date affects only which results are displayed but not the time frame for the calculation.

    If you enter a posting date in the To field and run the report in Simulation mode, the application derives the latest system date for inventory documents with this posting date and bases the simulation on this system date. The results are as follows:

    • The calculation covers inventory documents from the date the company was created until the derived system To date, even if this date is later than the specified posting To date.

    • The results window shows all documents with a posting date that is earlier than or the same as the posting date you specified.

    Example Example

    The company started in January 1, 2009. Today's date is June 21, 2010. Three goods receipts have been created today with the following posting dates:

    • June 18, 2010

    • June 21, 2010

    • July 6, 2010

    In the selection criteria window, you specify Posting Date with June 18, 2010 as the To date. You then run the report in Simulation mode. Of the goods receipts posted today, only the one with the posting date June 18, 2010 is displayed in the results window.

    You now run the report in Display mode with the same selection criteria apart from the date: this time, you specify System Date with June 21 as the To date. In the results window, all three goods receipts created today are displayed.

    End of the example.

    Note Note

    If you want to run a simulation until today's date or continue a simulation performed yesterday or on another date in the past, remember to change the To date.

    End of the note.

    Project

    The projects you specify here affect only what data is displayed in the report, not the calculation of the inventory values.

    Calc. Method/Price Source

    Specify the method by which you want the inventory values to be simulated.

    The method Based on Item Definition uses the valuation methods from the item master data.

    If you select the method Price List, the field Price Source appears in which you must select the required price list.

    By Location/By Warehouse

    The storage locations or warehouses you specify here affect only what data is displayed in the report, not the calculation of the inventory values.

    FC Exchange Rate

    If you valuate transactions in a foreign currency, select one of the following:

    • Exchange Rate on Report Date

      The cumulative values are converted according to the exchange rate on the report date.

    • Transaction Rate

      • If the calculation method is Moving Average or FIFO and you have selected Additional FC for Total and specified a foreign currency, the exchange rate is used for display purposes only. The item costs are always based on the transaction value in local currency. The foreign currency values are displayed according to the exchange rates that exist for the dates on which the respective documents were added (  Administration   Exchange Rates and Indexes  ).

      • If the calculation method is By Price List or Last Evaluated Price and the price is maintained in the respective price list in a foreign currency, the exchange rates that exist for the dates on which the respective documents were added (  Administration   Exchange Rates and Indexes  ) are used to calculate the item costs in local currency.

      The following example illustrates how the value of a transaction may be simulated differently according to the calculation method:

      Example Example

      Calculation Method

      Good Receipts Qty

      Unit Price in Goods Receipt

      FC Translation Rate in Goods Receipt

      Goods Receipts Total

      Price in Price List

      Exchange Rate in Exchange Rates and Indexes Window on Transaction Date

      Report: Cost in LC

      Report: Transaction Value in LC

      Report: Transaction Value in FC

      Moving Average

      10

      USD 10

      0.75

      CLP 75

      N/A

      1*

      CLP 8

      CLP 75

      USD 75

      FIFO

      10

      USD 10

      0.75

      CLP 75

      N/A

      1*

      CLP 8

      CLP 75

      USD 75

      By Price List

      10

      N/A

      N/A

      N/A

      USD 10

      1**

      CLP 10

      CLP 100

      USD 100

      Last Evaluated Price

      10

      N/A

      N/A

      N/A

      CLP 5

      1*

      CLP 5

      CLP 50

      USD 50

      * = Used to display transaction value in foreign currency

      ** = Used to display cost and transaction value in local currency

      End of the example.
    • In Release Receipt Rate

      Note Note

      This checkbox is available for non-continuous inventory systems if the FIFO calculation method is used.

      In the Chilean localization, it is available only for the classic inventory valuation simulation report, not for the enhanced inventory valuation simulation report.

      End of the note.

      It determines which exchange rate is used for releases of goods from stock. If the checkbox is selected, the calculation is based on the exchange rate of the day the inventory entered the stock (for example, when the item was bought). If the checkbox is unselected, the calculation is based on the exchange rate of the day the item was released from stock (for example, when the item was sold).

    Exclude Inflation-Based Material Revaluation

    If you select this checkbox and inventory revaluations due to inflation have been marked as such through selection of the checkbox Inflation-Based Revaluation in the Inventory Revaluation window (  Inventory   Inventory Transactions   Inventory Revaluation  ), SAP Business One does not take inflation-based revaluations into account in the simulation run.

    Additional FC for Total

    Displays the valuation in a foreign currency.

    By default the field is deselected and the results are displayed in local currency.

    If you select Additional FC for Total, an additional field is displayed in which you must select the required currency. You can then switch between the local currency and the selected foreign currency on the top left of the report results window.

    If you specify an additional currency, it is displayed the next time you open the report.

  3. Choose the Run button and the required simulation mode.

    Run

    Specify one of the following modes for the simulation run:

    • Simulation

      Overwrites the previous report results. Only the most recent simulation run is saved.

      If the previous simulation was created by a different user, a system message warns you of this fact.

    • Continue Simulation

      To continue an existing simulation, you must retain the selection criteria with which this window opens, with one exception: you adjust the To date as required.

      If the previous simulation was created by a different user, a system message informs you of this fact.

      If the previous simulation finished with errors, a system message warns you of this fact.

    • Display

      Displays all or part of the results saved from the previous simulation run, depending on whether you leave the selection criteria as they were when this window opened or limit the display to, for example, specific items or a smaller date range.

      If the previous simulation finished with errors, a system message warns you of this fact.

    If a simulation by another user is in progress, you cannot start a new simulation or continue an existing one.

    If you choose   Run   Simulation   or   Run   Continue Simulation  , the application checks the consistency of the inventory data on the database before it carries out the simulation run. If no issues are detected, the following information message appears at the bottom of the SAP Business One desktop: Inventory pre-checks completed successfully. Otherwise, the following happens:

    • The following error message appears in the status bar: Inventory pre-checks failed; see SAP Note 1459327.

    • A log file appears in which you can see the individual errors, warnings, and information messages.

    • A dialog box appears in which you must respond to the following question: Pre-check queries reported errors. Do you want to continue?

      Recommendation Recommendation

      If the pre-check finds errors, request assistance from your partner to run the inventory valuation utility in the remote support platform for SAP Business One before you run the inventory valuation simulation report.

      End of the recommendation.

      To stop the simulation and return to the selection criteria window, choose the No button. To run the simulation despite the errors, choose the Yes button.

  4. In the Inventory Valuation Simulation Report window, use the Expand button to view the details.

Result

The following information is provided to help you interpret the report results:

  • Each item's last evaluated price is updated with the item cost from the simulation. This applies not only to the items displayed but to all simulated items. If the calculation method for an item was moving average price, the last evaluated price = cumulative value/cumulative quantity. If the calculation method for an item was FIFO, the last evaluated price = the next open layer's item cost.

  • Items with no transactions within the specified date range are displayed with an opening balance.

  • You can export the report results to Microsoft Excel. For more information, see Toolbar.

  • A simulation based on the same selection criteria as a previous simulation but run at a later time yields consistent results even if changes have since been made to bills of materials or to the item master data fields Items per Sales Unit or Items per Purchase Unit. The application reads from the database the historical bill of material or item master data that was valid at the respective transaction dates.

  • If one of the following combinations of methods applies for an item, the simulation run ignores any inventory revaluations done for that item:

    Valuation Method on Inventory Tab of Item Master Data

    Calculation Method in Inventory Valuation Simulation Report

    MAP

    FIFO

    FIFO

    MAP

    STD

    FIFO

  • Child items are simulated according to the same logic as parent items.

    Examples of Parent Item and Child Item Valuation Methods

    Valuation Method on Inventory Tab of Item Master Data

    Report Selection Criteria

    Valuation Method Used for the Calculation

    Parent item = MAP

    Child 1 = FIFO

    Child 2 = Standard

    Parent item selected

    Calculation method = FIFO

    Parent item = FIFO

    Child 1 = FIFO

    Child 2 = FIFO

    Parent item = MAP

    Child 1 = FIFO

    Child 2 = Standard

    Parent item selected

    Calculation method = Based on Item Definition

    Parent item = MAP

    Child 1 = FIFO

    Child 2 = Standard

  • If the simulation run ends with errors or warnings, you can view them in a message log.

  • The report results are stored in the following tables: SITM, SITW, SIVL, SIVL1, SIVQ, SIVE, SIVK, OISL.